In setting up my chart of accounts, I have a cash account under Income and a cash account under Assets.
When I go to post an expense, I post a debit to the Expense account…but do I post a Credit to the cash account under Income or under Assets?
confused?
You should not have any cash accounts under Income. Cash accounts are all asset accounts. Revenues should be posted to income accounts, for example, Sales, Rental Income, Interest Income, Inventory Sales, etc. If you are not well-versed on accounting principles, you might spend some time learning the basics at a web site such as http://www.accountingcoach.com.
In addition to the above, cash accounts should be created using the Cash Accounts tab and not created directly under Assets on the Chart of Accounts